Action in swaps as slowdown in CP threatens peripherals
Concern over Europe weighed heavily on sentiment in the CP market this week, while top quality European SSA names continued to benefit both from a favourable euro-dollar basis swap and a flight to quality mentality among increasingly wary investors.
While peripheral credits received very little attention, volatility in FX swaps allowed issuers such as KfW, Rentenbank and Caisse dAmortissement de la Dette Sociale to secure extremely cheap funding while still offering attractive levels.
"Highly rated SSAs are getting crazy levels in dollars," said an ECP dealer in London.
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